REPORT ON A LINECUTTING AND GEOPHYSICAL PROGRAM
POTTER MINE PROPERTY
FOR THE HARRISON GROUP OF COMPANIES

TABLE OF CONTENTS

INTRODUCTION 1
LOCATION 1
PROPERTY LOCATION MAP 1(a)
GENERAL GEOLOGY 1
LIMECUTTING 1
GEOPHYSICAL SURVEYS 2
MAGNETOMETER SURVEY 2
VLF - ELECTROMAGNETIC SURVEY 3
CONCLUSIONS 3,4
RECOMMENDATIONS 4

APPENDIXED

CERTIFICATE
BACK POCKET - MAGNETOMETER VALUES MAPS EAST AND WEST
MAGNETOMETER CONTOUR MAPS EAST AND WEST
VLF- ELECTROMAGNETIC MAPS VALUES AND PROFILES EAST AND WEST
VLF FRASER FILTER MAPS EAST AND WEST

Introduction

Lashex Ltd. was contracted to conduct linecutting, magnetometer and vlf-electromagnetic surveys over claims in the Potter Mine Area. A total of 70 kilometers of linecutting and 60 kilometers of geophysics was performed.

This report covers the program and given conclusions and recommendations.

Location

The property is located in the Township of Munro, N.T.S. 42-A/9 and is approximately 24 kilometers east of the town of Matheson then northerly on a bush road to the former minesite.

General Geology

Geologically the property is situated in the Abitibi Subprovince of the Superior Province and is underlain by volcanic rocks of from ultramafic to felsic composition of about 2710 million years old. Intruded into and in part contemporaneous, are peridotite to serpentenite sills and dykes. To the south side of the property a syenite is intruded and is in a faulted contact with the mafic to ultramafic rocks. A southwesterly striking quartz diabase dyke cuts through the western half of the property and appears to be offset about 400 to 500 meters.

At the mine site the ore is located in and at the top of a rhyolite lapilli tuff which is overlain in part by a cherty tuff. Overlying this is a peridotite sill or thick ultramafic flows.

Mineralization at the mine site consisted of semi-massive to massive sulfide tenses composed of various proportions of pyrrhotite, chalcopyrite, sphalerite, pyrite and galena. These lenses, up to 30 feet thick and 400 feet long, are situated at the top of the rhyolite lapilli tuff. The ore and felsic units have a northerly dip and plunge steeply westward.

Approximately 0.5 million tons was previously mined. The lowest level bottomed in ore at 1200 feet. The shaft extends down to 1320 feet.

1996 PROGRAM

Linecutting

An east-west baseline was established along the north boundary of the east claims and zeroed at the east corner. The baseline was then cut to 3600 meters west with crosslines established every 75 meters. Stations were located every 25 meters along the crosslines. Tie-lines were cut along the north and south boundaries of the property. A total of 70 kilometers of baseline, tie-lines and crosslines were cut.

Geophysical Surveys

A combined total field magnetometer/vlf-electromagnetic survey was conducted over the property for a total of 60 kilometers. Magnetometer readings were taken every 12.5 meters along the lines. A base station recorder, reading every 20 seconds, was used to correct the data.

The vlf-electromagnetic survey was conducted using Cutler, Maine with a frequency of 24.0 kHz. As a transmitter station. Readings were taken every 25 meters along the lines.

Magnetometer Survey

The magnetic survey defined a general east-west strike to the underlying rock units through the central portion of the property, a northwesterly trending strike for the southeast part, and a contorted south to southwesterly strike to the west central area. The property consists of several distinct anomalies that are discussed below.

Anomaly ‘A’ - This anomaly is located between lines 450W to 1200W and from 800S to 1100S. This anomaly is actually a series of high and low values. The area appears to be underlain by ultramafic intrusives consisting of pyroxenites and peridotites and possibly some komatiitic flows. Disseminated magnetite within these units are the probable cause of this anomaly.

Anomaly ‘B; - This is the Minesite Anomaly extending from L850W to 1850W. Further east several one line magnetic highs from 300W to 600W may be the extension of this zone.

This anomaly is probably caused from peridotite which was located in the underground workings and forms the hanging wall to the orebody.

Anomaly ‘C’ - This anomaly extends northwesterly from 1500W to 2000W and from 500-700S on L1500W to 300-350S on L2000W. This anomaly is very similar to anomaly ‘B; and is probable that it is caused from a peridotite.

Anomaly ‘D’ - This anomaly is located between 450-675N on L1200W to 500-800N on L1950W. The magnetics are very strong with one reading exceeding 70,000 gammas on L1650W at 587.5N. An ultramafic serpentenite intrusion is the probable cause of this magnetic feature.

Anomaly ‘E’ - This anomaly is located from 350-550N on L2400W to 200-275N on L2775W. A possible faulted extension runs south to southwesterly from L2625W to L3150W, 800S.

Previous mapping has shown that a quartz diabase dyke extends through this area and is the probable cause of this anomaly.

Other low magnetic anomalies appear to be formational and are due to a slight increase in the magnetite content of the mafic volcanic flows.

VLF-Electromagnetic Survey

Several vlf conductors were located by the survey, most of which are flanking the magnetic anomalies.

Conductor ‘A’ - This is a very strong conductor that extends southeast from L1200W, 750S to L450W, 1175S. The conductor crosses several magnetic anomalies and in part flanks the high values. A probable fault appears to offset the conductor.

It is probable that this conductor is caused by sulfide mineralization.

Conductor ‘B’ - This set of strong conductors extends from L’0’ to L2050W. For the most part they flank the magnetic highs caused from the peridotites. Near the minesite it passes very near the known massive sulfide horizon. It is probable that the cause of these conductors is the sulfide horizon located at the top of the felsic lapilli tuff and below the peridotite.

Conductor ‘C’ - These set of conductors are located outside of and to the north of the mine area. They appear to be formational and have little magnetic response. It is probable that these conductors are caused from disseminated sulfides along certain horizons (tuffs, graphitic tuffs, interflow tuffs and sediments) within the volcanic assemblage.

Conductor ‘D’ - This conductor located in the south central part of the property trends northwesterly and is located near the site of a known mapped fault - the ‘Centre Hill Fault’. The conductor consists of two parts separated by the property boundaries. It is probable that this conductor is caused from the fault and possibly in part due to sulfides within the fault.

Conductor ‘E’ - This series of east-west trending conductors are located in the northern portion of the property. The area is underlain by ultramafic intrusions. The cause of these conductors may be due in part to serpentinization of the ultramafic and in part to disseminated sulfides. In some locations the conductors are very strong which may indicate sulfides.

Conductor ‘F’ - This series of conductors are located in the southwest part of the property from L2625W to L3075W and between 300S and 400S. They may be the western extension of Conductor ‘B’. They are moderately strong and may be caused by sulfide mineralization.

Conductor ‘G’ - These series of conductors are located in the northwestern part of the property and appear to be flanking some weak magnetic anomalies. The cause of these conductors may be due to disseminated sulfides within the volcanic rock units similar to Conductor ‘C’.

Conclusion

The magnetometer/vlf-electromagnetic surveys were successful in locating anomalous zones that will require further work to fully explain their causes.

The conductors that flank the magnetic anomalies east and west of the mine appear to be in the same geological horizon that the orebody is located and as such may indicate

 that the potential to encounter more volcanogenic massive sulfides is extremely high.

Given the fact that the Potter Mine still had reserves along strike and to depth and that massive sulphide lenses and orebodies usually occur in clusters further indicates the high potential of this property. The strong conductors outside of the mine area and located in ultramafic intrusive to extrusive rocks have good potential to host nickel-copper-cobalt p.g.e. orebodies.

Other conductors should also be tested as to their gold potential. These are the conductors that appear to be formational and the conductor that follows the Centre Hill Fault.

Recommendations

Given the excellent results of the geophysical surveys and the fact that the property hosts known massive sulfide deposits the following programs are recommended:

PHASE I

1. The property should be prospected and mapped in detail with particular attention paid to explaining the magnetometer anomalies and vlf conductors.
2. A soil geochemistry ‘B’ horizon survey should be conducted over conductors that are away from the minesite influence and that cannot be explained by surface prospecting. Assays should be performed for Cu, Zn, Pb, Au, Ag, Co, and Ni.
3. Regardless of the results of the above program it is recommended that at least 3,000 meters of diamond drilling should take place. The numerous conductors and down dip extension to the known orebody requires diamond drilling to test their potential.

The above program will cost approximately $350,000.⁰⁰ to fully carry out.

PHASE II

The following is recommended as a follow-up to Phase I.

1. It is recommended that at least 10,000 meters of diamond drilling should be undertaken to test the more favourable results of the above program and to test any remaining drill targets.

This program will require approximately $900,000.⁰⁰ to complete.

Certificate

 I, Raymond Lashbrook do hereby declare that

 I have no interest in this property nor do

1. I graduated from Haileybury School of Mines in 1969 and I have been practising my profession ever since.
2. I own a company called Lashex Ltd. which performed the work on this property.

I reside at 973 Pinecreek Road, R.R. #1, Callander, Ontario, P0H 1H0.